JD,

Yes, issuing it originally to banks without interest either via the government or via a central bank with specific policies is enlightened. However, even a state bank like North Dakota’s is going to charge interest on the loans they originate. Having an entity like a National Credit office that monitors and gives the go ahead on loans for their underwriting quality as well as for the actual parties involved and the purposes for which the loan is made is part of an ethical money system also.

While we’re making distinctions I’d like to point out that a money system and economy that merely has money extracted from the circular flow could be stabilized by having the government spend money into the economy for infrastructure etc. However, if there is extraction of money from the circular flow and ALSO a scarcity ratio of individual incomes and costs/prices that occurs no matter how much money is pumped into the economy then no amount of money actually spent into the economy via enterprise will stabilize it….because the system itself creates the problem. And that is why gifting utilizing the plus and minus digital nature of the debt based money system….is the only way to actually and completely stabilize such a system.